IMPACT OF INSTITUTIONAL QUALITY ON POVERTY INCIDENCE IN NIGERIA

OKWOR, JUDE CORNELIUS (2025) IMPACT OF INSTITUTIONAL QUALITY ON POVERTY INCIDENCE IN NIGERIA. Other thesis, GODFREY OKOYE UNIVERSITY, ENUGU.

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Abstract

This study explored the impact of institutional quality on national poverty incidence (NPI) in Nigeria. Its broad objective is to evaluate the impact of institutional quality indicators on poverty incidence in Nigeria; to find out whether there is a short term and long term effect of institutional quality on poverty incidence in Nigeria. The specific objectives are to ascertain the impact of indicators of institutional quality on NPI; to find out whether there is a short term and long term effect of indicators of institutional quality on NPI. Data on national poverty incidence in Nigeria was computed using poverty head count rate. Data on institutional quality was captured using indices for rule of law (RL), voice and accountability (VA), political stability (PS), regulatory quality (RQ), literacy rate and control of corruption (CC) as proxies from Worldwide Governance Indicators website. Stationarity tests using the Augmented Dickey-Fuller tool showed that rule of law, voice and accountability, political stability, regulatory quality, control of corruption and literacy rate were stationary of order one, [I(1)]. Hence the Johansen’s cointegration test was employed. Both the trace statistic and Max- Eigen values indicated the presence of a long-term relationship among the variables. The researcher then used the fully modified OLS model to estimate the long-run equation and error correction model (ECM) to establish the short-term and long-term relationship between the variables; Granger causality test was done to know the causal relationship between the variables. The result shows that institutional quality indicators made substantial effect on the national poverty incidence at 5% level of significance except voice and accountability and literacy rate. Moreover, voice and accountability, regulatory quality, control of corruption has negative impacts on the poverty incidence; there is short-run and long-run relationship between institutional quality and NPI. The result also shows that there is uni-directional causality relationship between rule of law and NPI and between political stability and NPI. The study therefore concludes that rule of law; voice and accountability; political stability; regulatory quality; control of corruption and literacy rate are viable instruments for controlling the incidence of poverty in Nigeria. It recommended a complete review and over haul of governmental regulatory institutions such as the Police, Courts in order to focus more on providing values to the ordinary citizens rather than to the political class. The researcher further recommended improved security to achieve political stability and increase corruption control to ensure that gains of public offices do not end in private pockets.

Item Type: Thesis (Other)
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculty of Management and Social Sciences
Depositing User: HILARY OBIEKWE
Date Deposited: 28 Aug 2026 08:43
Last Modified: 28 Aug 2026 08:43
URI: http://eprints.gouni.edu.ng/id/eprint/6325

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